$1.20 25% Given Just paid dividend High growth rate High growth period Stable growth Required return 3 years 5% 20% a) What are the dividends during the high growth period and one year later? 1 Div 1 2 Div 2 3 Div 3 4 Div 4 b) What is the share price at the end of high growth period? PT c) What is today's cum-dividend and ex-dividend price? Time Cash Flow PV 1 2 3 Ex-dividend price Cum-dividend price d) Assuming that you buy stock ex-dividend now, what are your expected dividend yield and capital gains this year? Dividend Yield Capital Gains e) What are expected dividend yield and capital gains after the end of high growth period? Dividend Yield Capital Gains $1.20 25% Given Just paid dividend High growth rate High growth period Stable growth Required return 3 years 5% 20% a) What are the dividends during the high growth period and one year later? 1 Div 1 2 Div 2 3 Div 3 4 Div 4 b) What is the share price at the end of high growth period? PT c) What is today's cum-dividend and ex-dividend price? Time Cash Flow PV 1 2 3 Ex-dividend price Cum-dividend price d) Assuming that you buy stock ex-dividend now, what are your expected dividend yield and capital gains this year? Dividend Yield Capital Gains e) What are expected dividend yield and capital gains after the end of high growth period? Dividend Yield Capital Gains